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Understanding the Linkages between Climate Change and Inequality in the United States

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Abstract
The authors conduct a review of the existing academic literature to outline possible links between climate change and inequality in the United States. First, researchers have shown that the impact of both physical and transition risks may be uneven across location, income, race, and age. This is driven by a region’s geography as well as its ability to adapt. Second, measures that individuals and governments take to adapt to climate change and to transition to lower emissions risk increasing inequality. Finally, while federal aid and insurance coverage can mitigate the direct impact of physical risks, their structure may—inadvertently—sustain and entrench existing inequalities. The authors conclude by outlining some directions for future research on the nexus between inequality and climate change.

Suggested Citation

  • Ruchi Avtar & Kristian S. Blickle & Rajashri Chakrabarti & Janavi Janakiraman & Maxim L. Pinkovskiy, 2023. "Understanding the Linkages between Climate Change and Inequality in the United States," Economic Policy Review, Federal Reserve Bank of New York, vol. 29(1), pages 1-39, June.
    • Handle: RePEc:fip:fednep:96364
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    References listed on IDEAS

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    Cited by:

    1. Benjamin Dennis, 2022. "Climate Change and Financial Policy: A Literature Review," Finance and Economics Discussion Series 2022-048, Board of Governors of the Federal Reserve System (U.S.).
    2. Avgousti, Aris & Caprioli, Francesco & Caracciolo, Giacomo & Cochard, Marion & Dallari, Pietro & Delgado-Téllez, Mar & Domingues, João & Ferdinandusse, Marien & Filip, Daniela & Nerlich, Carolin & Pra, 2023. "The climate change challenge and fiscal instruments and policies in the EU," Occasional Paper Series 315, European Central Bank.

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    More about this item

    Keywords

    climate; natural disasters; inequality;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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